For All Team, what happens to obligations arising before ATFC receives written notice of revocation?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
As to each guarantor, this guarantee shall continue in effect until ATFC has received written notice of revocation, notwithstanding the death of such guarantor (whose estate shall be bound until receipt of such notice), the release of any other guarantor, or the dissolution, liquidation, termination of business, bankruptcy, acquisition, merger, reorganization, or any other change in the nature or form of the business of USER, until all of USER's obligations and indebtedness under said Agreement shall have been fully performed and paid. No revocation or termination hereof shall affect rights or obligations under this guarantee with respect to obligations or indebtedness arising or contracted for prior to ATFC's receipt of written notice thereof, and any revocation or termination shall exclude from this guarantee only liabilities arising after such receipt that are unconnected with liabilities theretofore arising and transactions theretofore entered into.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the guarantor's obligations for All Team continue until ATFC (All Team Franchise Corporation) receives written notice of revocation. This means that even if a guarantor attempts to terminate their guarantee, they remain responsible for any obligations or debts that arose before ATFC received the written notice. The guarantor's estate is also bound until such notice is received.
Specifically, no revocation or termination of the guarantee affects rights or obligations related to debts or obligations that were created or contracted before ATFC received the written notice. Any revocation only applies to liabilities that arise after the notice is received and are not connected to previous liabilities or transactions. This ensures that All Team is protected from losses on obligations that were already in place before a guarantor attempts to withdraw their guarantee.
For a prospective All Team franchisee, this clause in the Funding Agreement Guarantee means that any personal guarantees provided will remain in effect for all existing debts and obligations until All Team receives formal written notice of revocation. It is important for franchisees and their guarantors to understand that simply deciding to revoke the guarantee is not enough; the revocation is only effective from the date All Team acknowledges receipt of the written notice. This protects All Team from potential losses due to sudden withdrawals of guarantees on existing financial commitments.